Fact Pattern 20-1 MicroManage Is the Fastest Growing Home-Software Producer in the Country

question 424

Multiple Choice

Fact Pattern 20-1
MicroManage is the fastest growing home-software producer in the country. In 2000, it sold 6% of all home software in the U.S., but in 2011, it sold 55% of all home software. A recent issue of Computer Universe said that MicroManage was "the most dominant and aggressive of all home-software developers." Home software is a small part of the entire software industry.
In 2011, MicroManage proposed a merger with Game Master, its main rival. Game Master was responsible for 10% of all home-software sales in 2010. MicroManage's president says that the combination of the firms will allow MicroManage to lower costs and pass the savings on to its customers.
The Department of Justice filed suit to stop this merger, claiming the combination would give monopoly power to the merged firm. Justice insists that consumers would lose in the end.
-Refer to Fact Pattern 20-1. Under the rule established in Standard Oil Co. of New Jersey v. U.S., a merger between MicroManage and Game Master is likely to result in a:

• A) determination that the merger will help consumers and so, should stand
• B) request by the government that the newly merged company be broken up
• C) request by Game Master that the merged company be dissolved
• D) finding that the computer industry, generally, is exempted from the antitrust laws
• E) finding that an illegal vertical restraint of trade has occurred

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Definitions:

Amino Acids

Organic compounds that combine to form proteins, serving as the building blocks of proteins and are essential for the synthesis of hormones and neurotransmitters.

Glycerol

A colorless, odorless, sweet-tasting liquid that serves as a backbone for triglycerides and is an important intermediate in carbohydrate and lipid metabolism.

Glycogenesis

The process of converting glucose into glycogen for storage in the liver and muscle cells.

Glycogen

Glycogen is a multi-branched polysaccharide of glucose that serves as a form of energy storage in animals and fungi, predominantly stored in the liver and muscle tissues.